All Clear For Zynga’s Ascent?

Zynga (ZNGA) is in the process of completing a 1 year Ascending Traingle. Ascending triangles breakout most often upwards and act as a reversal. There is one factor though that makes buying this breakout tricky which is the Gap from between the breakout line at 4.05 and 4.88. Gaps act as resistance zones and this area has yet to be cleared out. The gap will probably increase the time of the ZNGA reaching its target of $6 (if the breakout occurs)

znga


Topping Tees

Trulia & Tesla both are on the verge of completing a H&S Top. Lets take a look at each.
First up Trulia (TRLA). The 3-months H&S Top is sitting on gap on Aug 1st. Usually gaps act as support making this short idea tricky to enter. Short float is at 17%.

TRLA Daily

TRLA Daily

 

Meanwhile, Tesla (TSLA) 2-months H&S Top is less complicated with no gaps below. The pattern is completed upon closing below 160, targeting $130.. Short float is huge almost at 25%=1 in every 4 shares is shorted.

TSLA Daily

TSLA Daily

 


Friends Of Zillow

Zillow (Z) is one very very lucky stock. Z has 2 friends, one very close & old; an 11-months trendline and the other a new 11-week Gap. The trendline has been a very good friend saving Z from the bears on a couple of occasions. Meanwhile the gap saved Z from the recent shutdown/ceiling conundrum and acted as  a trustworthy support. So what has changed? The long time trend line has turned its back on Z the last 2 days despite a raging new highs market. A H&S top slanting downwards is in the making and the neckline may meet the gap (the ONLY friend Z has left).

Zillow Daily

Zillow Daily


Chef Fills The Gap Just Right

Chef’s Warehouse (CHEF) completed a mini H&S Top by closing below the neck line at 21.85. What is interesting about the pattern is that its a perfect gap fill from 2012. Just wanted to point this out for the ones that play the gap trade.

CHEF

CHEF Daily


BigMac Short

McDonalds (MCD) looks very weak here..being down on a day like this, in addition to closing the gap at the island reversal, plus the analogy of the past year.
Looks like a good short candidate with a stop @100.90. Pls share/comment !

mcd, mcdonalds, bigmac, the bigmac

MCD Daily